Call for input – designing a climate compatibility checkpoint for future oil and gas licensing in the UK continental shelf

In September 2020, the Secretary of State for Business, Energy and Industrial Strategy asked officials to conduct a review into the licensing of oil and gas in the UK.

The main question of this review was whether the continued award of new licences for oil and gas exploration is consistent with the UK’s wider climate objectives.

These wider objectives include carbon budgets, the UK’s nationally determined contribution (NDC), and achieving net zero emissions by 2050.

The review considered a wide range of factors which are influenced by the UK’s policy on future licensing. These included:

• Production of oil and gas
• The economy (including jobs, tax revenues and economic contribution)
• Greenhouse gas emissions arising from oil and gas production activity (both domestic and international)
• Investor Sentiment
• International Impact
• Energy Security
• The UK’s ability to achieve net zero

The review concluded in March 2021 and found that continued licensing for oil and gas is not inherently incompatible with the UK’s climate objectives. However, it was acknowledged that this may not always be the case in future. To resolve this issue, it was recommended that a “checkpoint” be introduced, to ensure that the compatibility of future licensing with the UK’s climate objectives is always evaluated before a licensing round is offered.

This consultation is to gather input on the design of that checkpoint

To contribute to the IOM3 response to this consultation, please contact David Arthur via the button below.